Does it make sense to refinance from a HDB to Bank loan?

What to look out for before refinancing?

Given the current lower interest rates we are seeing from the banks, it seems like it would make sense to switch from your HDB loan (2.6% interest) to a bank loan to take advantage of the lower interest rates.

What are some of the points you should consider before refinancing?

  1. Lock-in period
  2. Repayment penalty
  3. Other costs involved
  4. Comfort level
  5. How much are you saving when you switch?

Lock-in period

During the lock-in period, you can enjoy the advertised interest rate for a certain number of years (normally 2 to 3 years). There might be an exit penalty for those planning to sell the property within the lock-in period.

If you are planning to sell your property within the next 2 to 3 years, it would be a good idea to discuss with the bank to see which home loan would be most suitable for you.

Repayment penalty

For HDB loans, there is no penalty for paying more than your monthly instalment or paying back your mortgage earlier.

For bank loans, normally, there will be a 1.5% charge of the amount repaid.

Other costs involved

There are costs involved when switching from a HDB to bank loan such as legal and valuation fees. Depending on the size of your loan, there could be rebates provided by the bank to cover these costs.

Comfort level

It would appear that HDB is likely to be more lenient when homeowners are unable to service their mortgage. However, this will not be the case when it comes to banks.

How comfortable will you be switching to a bank loan in view of your current job security? Remember that you will not be able to switch back to a HDB loan after refinancing to a bank loan.

How much are you saving when you switch?

Based on a HDB purchased at $400,000 with a $360,000 HDB loan at 2.6%, monthly mortgage is $1,633.

For example, we take the bank loan at 1.5%, your monthly mortgage is $1,440 ($193 less than a HDB loan).

The above calculation was based on the same $360,000 loan. Your savings will be more substantial since you are going to borrow a lower amount from the bank when you are refinancing.

It is possible to reduce your monthly mortgage further by extending the loan tenure.

Want to understand more about switching to a bank loan?

Drop us a message at 87545387 and we will get back to you shortly.

Jui Residences

Jump to: Analysis

Summary:

What We Like

  •  Freehold Tenure
  • Waterfront Living
  • Next to the Kallang Park Connector Network

What We Dislike

  • Distance from MRT – 9 minutes walk
  • In front of Serangoon Road (Peak hour traffic)

Jui Residences is a freehold development. It is developed by Tiara Land Pte Ltd, which is a subsidiary of Selangor Dredging Berhad (SDB). SDB is listed on the main board of the Kuala Lumpur Stock Exchange and has various quality developments across Malaysia and Singapore.

The development is an 18-storey building with 117 residential units On paper, the expected TOP date is 1 June 2022. Jui Residences is a 9 minutes walk to Potong Pasir MRT or 2 bus stops away from the MRT.

Location:

Public Transport:

Nearest MRT Station: Potong Pasir Station

  • The station is on the North East Line
  • 3 stops to Little India Station for access to the Downtown Line
  • 4 stops to Dhoby Ghaut Station for access to the Circle Line and the North-South Line

Nearest Bus Stops:

  • Aft Moonstone Lane (60181)
    Services: 26, 31, 857, 985
  • St. Michael’s Pl (60161)
    Services: NR6, 13, 23, 26, 31, 61, 64, 65, 66, 107, 107M, 125, 133, 147, 853, 853C, 857, 985

Primary Schools (under 1km):

  • Bendemeer Primary School – 0.512 km
  • St Andrew’s Junior School – 0.587 km
The former National Aerated Water Factory

Interestingly, Jui Residences rests on the site of the former National Aerated Water Factory which used to produce soft drinks such as Sinalco and Kickapoo. *nostalgic moment*

The building is under conservation and will be integrated as part of the development.

Analysis:

Overlooking the Kallang River

Unit distribution:

Firstly, let us take a look at the unit distribution:

1-bedroom: 26 units (22.22%)
Type A1 & A2 = 13 units each

2-bedrooms: 39 units (33.33%)
Type B1, B2 & B3 = 13 units each

3-bedrooms: 52 units (44.44%)
Type C1, C2, C3 & C4 = 13 units each

The units will be spread across 13 levels, starting from Level 6 to Level 18. There will be a total of 9 units per level, with 2 lifts. The car park will be across 5 storeys, comprising of 1 basement and 4 storeys multi-storey car park. The number of car park lots that will be allocated is 1 lot per unit. This is reasonable as developments these days do not necessarily provide a lot for each unit.

Integrated with the Kallang PCN

Facilities:

Facilities that will be provided is relatively basic, with a swimming pool, wading pool, an area for aqua fitness, viewing deck and an outdoor dining area.

While it may lack in facilities, the development is next to the Kallang Park Connector Network (PCN) which is a 9km stretch which allows residents a park-like setting to jog and cycle leisurely. The Kallang PCN links Jui Residences to various places such as the Singapore Sports Hub. It is even possible to reach as far as the Singapore Flyer and Gardens by the Bay.

The estimated maintenance fees are $259 for the 1-bedroom units and $296 for the 2-bedroom and 3-bedroom units.

The development will also have 3 commercial units at the conserved building.

Orientation:

The stacks with a view of the Kallang River will have a South-West facing and the stacks facing towards the Pan-Island Expressway (PIE) will have a North-East facing.

    Unit types with a view of the Kallang River:

  • Type B1, B2 & B3 (2-bedrooms)
  • Type C3 & C4 (3-bedrooms)
    Unit types facing towards the PIE:

  • Type A1 & A2 (1-bedroom)
  • Type C1 & C2 (3-bedrooms)

The frontage of Jui Residences is Serangoon Road, which has high volumes of traffic during peak hours. This cannot be avoided as the development is located less than 500 metres from the entrance of the PIE. Thankfully, none of the stacks is facing Serangoon Road.

Sennett Residences

Jump to: Pricing Trends

Basic Info:

Sennett Residences is a 99-years leasehold development. It was developed by Clerodendrum Land Pte Ltd and was completed in 2016. Sennett Residences consists of 335 residential units, with a mix of 1 to 5-bedrooms. The development is just 2 minutes walk to Potong Pasir MRT. Residents can access the station entrance via the side gate.

Location:

Public Transport:

Nearest MRT Station: Potong Pasir Station

  • The station is on the North East Line
  • 3 stops to Little India Station for access to the Downtown Line
  • 4 stops to Dhoby Ghaut Station for access to the Circle Line and the North-South Line

Nearest Bus Stops:

  • Potong Pasir Stn (60269)
    Services: NR6, 13, 107M, 107, 133, 142, 147, 853, 853C
  • Opp Leong Bee Ct (60209)
    Services: NR6, 13, 107, 107M, 133, 142, 147, 853C, 853

Primary Schools (under 1km):

  • St. Andrew’s Junior School – 0.489 km
  • Cedar Primary School – 0.911 km

Pricing Trends

Pricing Trends is based on Average PSF for the period starting 1 Jan ’15 to 31 Dec ’19

1-bedroom units:
There were no transactions from 2015 to 2017. There was a 13.62% decrease from 2018 to 2019, the price drop could be attributed to the larger 1-bedroom units transacted in 2019.

2-bedroom units:
There was a 5.4 % dip in prices from 2015 to 2016, with no transactions recorded in 2017. Prices went up in 2018 beyond $1,500 PSF before dropping slightly in 2019. Overall, prices increased by 7.12% over the 5-year period.

3-bedroom units:
Similarly to 2-bedroom units, there was a dip in prices from 2015 to 2016, with no transactions in 2017 and 2019. While prices increased in 2018, overall prices decreased by 3.87% over the 5-year period.

4-bedroom units:
Prices saw a slight downtrend from 2015 to 2017. Prices rebounded and there was an uptrend from 2018 to 2019. Prices increased by 15.60% over the 5-year period.

5-bedroom units:
Prices went down by nearly 7% from 2015 to 2016, with no transactions recorded in 2017 and 2018. Prices went up sharply in 2019. Prices increased by 20.48% over the 5-year period.

Sant Ritz

Jump to: Pricing Trends

Basic Info:

Sant Ritz is a 99-years leasehold development. It was developed by Santarli Realty Pte. Ltd and was completed in 2016. Sant Ritz consists of 214 residential units, with a mix of 1 to 3-bedrooms. The development is located just 3 minutes walk to Potong Pasir MRT.

Location:

Public Transport:

Nearest MRT Station: Potong Pasir Station

  • The station is on the North East Line
  • 3 stops to Little India Station for access to the Downtown Line
  • 4 stops to Dhoby Ghaut Station for access to the Circle Line and the North-South Line

Nearest Bus Stops:

  • Opp Leong Bee Ct (60209)
    Services: NR6, 13, 107, 107M, 133, 142, 147, 853C, 853
  • Aft Tai Thong Cres (60211)
    Services: 8, 61, 64, 65, 66, 90, 125, 151, 154

Primary Schools (under 1km):

  • St. Andrew’s Junior School – 0.505 km
  • Bendemeer Primary School – 0.977 km
  • Cedar Primary School – 0.989 km

Pricing Trends

Pricing Trends is based on Average PSF for the period starting 1 Jan ’15 to 31 Dec ’19

1-bedroom units:
There were no transactions recorded from 2015 to 2017. Pricing remained fairly flat from 2018 to 2019. Prices dropped by 2.63% over the 5-year period.

2-bedroom units:
There were no transactions recorded from 2015 to 2016 and 2019. Pricing remained fairly flat from 2017 to 2018. Prices went up by 2.43% over the 5-year period.

3-bedroom units:
Pricing went up from 2015 to 2016, before going back down in 2017. There was a significant increase in prices in 2018 and 2019. Overall, prices increased by 31.23% over the 5-year period.

18 Woodsville

 

Jump to: Pricing Trends

Basic Info:

18 Woodsville is a freehold development. It was developed by S P Setia International (S) Pte Ltd and was completed in 2015. Woodsville 28 consists of 101 residential units, with a mix of 1 to 3-bedrooms. The development is located just 5 minutes walk to Potong Pasir MRT.

Location:

Public Transport:

Nearest MRT Station: Potong Pasir Station

  • The station is on the North East Line
  • 3 stops to Little India Station for access to the Downtown Line
  • 4 stops to Dhoby Ghaut Station for access to the Circle Line and the North-South Line

Nearest Bus Stops:

  • Leong Bee Ct (60201)
    Services: NR6, 13, 107, 107M, 133, 142, 147, 853C, 853
  • St. Andrew’s Jnr Sch (60081)
    Services: 8, 26, 31, 90, 142, 151, 154, 857, 966, 985

Primary Schools (under 1km):

  • St. Andrew’s Junior School – 0.405 km
  • Bendemeer Primary School – 0.926 km

Pricing Trends

Pricing Trends is based on Average PSF for the period starting 1 Jan ’15 to 31 Dec ’19

1-bedroom units:
There were no transactions recorded in 2015 and 2017. Pricing increased in 2018 from 2016 and decreased in 2019. Overall, prices increased by 19.12% over the 5-year period.

2-bedroom units:
Pricing increased from 2017 to 2018. There were no transactions recorded in 2015, 2016 and 2019. Prices went up by 33.13% over the 5-year period.

3-bedroom units:
Average PSF pricing was $1,584 in 2015. There were no transactions recorded from 2016 to 2019.

Nin Residence

Jump to: Pricing Trends

Basic Info:

Nin Residence is a 99-years leasehold development. It was developed by Qingjian Realty (Serangoon) Pte Ltd and was completed in 2014. Nin Residences consists of 219 residential units, with a mix of 1 to 3-bedrooms. The development is located just 3 minutes walk to Potong Pasir MRT.

Location:

Public Transport:

Nearest MRT Station: Potong Pasir Station

  • The station is on the North East Line
  • 3 stops to Little India Station for access to the Downtown Line
  • 4 stops to Dhoby Ghaut Station for access to the Circle Line and the North-South Line

Nearest Bus Stops:

  • Opp Blk 101 (61019)
    Services: NR6, 13, 107M, 107, 133, 147, 853, 853C
  • Blk 101 (61069)
    Services: 142

Primary Schools (under 1km):

  • St. Andrew’s Junior School – 0.575 km
  • Cedar Primary School – 0.715 km

Pricing Trends

Pricing Trends is based on Average PSF for the period starting 1 Jan ’15 to 31 Dec ’19

1-bedroom units:
Pricing was on a downtrend from 2015 to 2016. Prices went up gradually in 2017 and 2018 before dropping slightly in 2019. Overall, prices decreased by 1.60% over the 5-year period.

2-bedroom units:
Similar to the 1-bedroom units, pricing was also on a downtrend from 2015 to 2017. Prices went up slightly in 2018 with no transactions recorded in 2019. Prices decreased by 2.24% over the 5-year period.

3-bedroom units:
Pricing maintained a similar downtrend from 2015 to 2017. Prices saw no growth in 2018, but it went up in 2019. Overall, prices decreased by 2.56% over the 5-year period.

 

Woodsville 28

 

Jump to: Pricing Trends

Basic Info:

Woodsville 28 is a 99-years leasehold development. It was developed by Yishun Property Pte. Ltd and was completed in 2012. Woodsville 28 consists of 110 residential units, with a mix of 2 to 4-bedrooms. The development is located just 2 minutes walk to Potong Pasir MRT.

Location:

Public Transport:

Nearest MRT Station: Potong Pasir Station

  • The station is on the North East Line
  • 3 stops to Little India Station for access to the Downtown Line
  • 4 stops to Dhoby Ghaut Station for access to the Circle Line and the North-South Line

Nearest Bus Stops:

  • Opp Leong Bee Ct (60209)
    Services: NR6, 13, 107, 107M, 133, 142, 147, 853C, 853
  • St. Andrew’s Jnr Sch (60081)
    Services: 8, 26, 31, 90, 142, 151, 154, 857, 966, 985

Primary Schools (under 1km):

  • St. Andrew’s Junior School – 0.398 km
  • Bendemeer Primary School – 0.980 km

Pricing Trends

Pricing Trends is based on Average PSF for the period starting 1 Jan ’15 to 31 Dec ’19

2-bedroom units:
There were no transactions recorded in 2015 and 2017. Pricing increased in 2018 from 2016 and remained flat in 2019. Prices increased by 17.40% over the 5-year period.

3-bedroom units:
Pricing increased gradually from 2015 to 2017. Prices dropped in 2018 before going up slightly. Prices went up by 17.15% over the 5-year period.

4-bedroom units:
There were no transactions recorded from 2015 to 2019.

One Leicester


Jump to: Pricing Trends

Basic Info:

One Leicester is a freehold development. It was developed by Centrepoint Properties Pte Ltd and was completed in 2009. One Leicester consists of 194 residential units, with a mix of 2 to 4-bedrooms. The development is located near Potong Pasir MRT within 4 minutes walking distance.

Location:

Public Transport:

Nearest MRT Station: Potong Pasir Station

  • The station is on the North East Line
  • 3 stops to Little India Station for access to the Downtown Line
  • 4 stops to Dhoby Ghaut Station for access to the Circle Line and the North-South Line

Nearest Bus Stops:

  • Leong Bee Ct (60201)
    Services: NR6, 13, 107, 107M, 133, 142, 147, 853C, 853
  • St. Andrew’s Jnr Sch (60081)
    Services: 8, 26, 31, 90, 142, 151, 154, 857, 966, 985

Primary Schools (under 1km):

  • St. Andrew’s Junior School – 0.339 km
  • Bendemeer Primary School – 0.883 km

Pricing Trends

Pricing Trends is based on Average PSF for the period starting 1 Jan ’15 to 31 Dec ’19

2-bedroom units:
There were no transactions recorded in 2015. There was an uptrend in price from 2016 to 2019. Prices increased by 8.83% over the 5-year period.

3-bedroom units:
There was a 5.67% drop in price from 2015 to 2016 due to a sale of a larger sized 3-bedroom unit. Aside from that, pricing steadily increased over the years. Prices increased by 13.97% over the 5-year period.

4-bedroom units:
There were no transactions recorded from 2015 to 2017. Prices increased by 7.48% from 2018 to 2019.

The Venue Residences and Shoppes

Jump to: Pricing Trends

Basic Info:

The Venue Residences and Shoppes is a 99-years leasehold mixed-use development. It was developed by Crescent View Developments Pte Ltd and was completed in 2017. The Venue Residences and Shoppes consists of 266 residential units, with 1 to 4-bedrooms in various layouts. The development is located near Potong Pasir MRT within 4 minutes walking distance.

Location:

Public Transport:

Nearest MRT Station: Potong Pasir Station

  • The station is on the North East Line
  • 3 stops to Little India Station for access to the Downtown Line
  • 4 stops to Dhoby Ghaut Station for access to the Circle Line and the North-South Line

Nearest Bus Stops:

  • Leong Bee Ct (60201)
    Services: NR6, 13, 107, 107M, 133, 142, 147, 853C, 853
  • Aft Tai Thong Cres (60211)
    Services: 8, 61, 64, 65, 66, 90, 125, 151, 154

Primary Schools (under 1km):

  • St. Andrew’s Junior School – 0.542 km
  • Bendemeer Primary School – 0.896 km

Pricing Trends

Pricing Trends is based on Average PSF for the period starting 1 Jan ’15 to 31 Dec ’19

1-bedroom units:
Pricing was at $1,199 PSF in 2015. There were no transactions in both 2016 and 2017. Pricing saw a significant increase in 2018, up by 27%. Prices went up further in 2019, bringing the total increase to 36.86% over the 5-year period.

2-bedroom units:
Pricing remained flat from 2015 to 2016. There was a slight dip in prices in 2017. However, prices increased in both 2018 and 2019. Prices increased by 8.81% over the 5-year period.

3-bedroom units:
Similar to 2-bedroom units, pricing remained flat from 2015 to 2016, with a slight dip in 2017. Prices also increased in both 2018 and 2019. Prices increased by 7.38% over the 5-year period.

4-bedroom units:
Prices dropped by 5% from 2015 to 2016. Pricing remained fairly flat from 2016 to 2018. There was a dip in prices in 2019. Prices decreased by 10.30% over the 5-year period.

The Poiz Residences

Jump to: Pricing Trends

Basic Info:

The Poiz Residences is a 99-years leasehold mixed-use development. It was developed by MCC Land (Singapore) Pte Ltd and was completed in 2018. The Poiz Residences consists of 731 residential units, with 1 to 4-bedrooms in various layouts. The development is well-located being just 1 minute walk to Potong Pasir MRT.

Location:

Public Transport:

Nearest MRT Station: Potong Pasir Station

  • The station is on the North East Line
  • 3 stops to Little India Station for access to the Downtown Line
  • 4 stops to Dhoby Ghaut Station for access to the Circle Line and the North-South Line

Nearest Bus Stops:

  • Potong Pasir Stn (60261)
    Services: NR6, 13, 107, 107M, 133, 142, 147, 853, 853C
  • Blk 101 (61069)
    Services: 142

Primary Schools (under 1km):

  • St. Andrew’s Junior School – 0.236 km

Pricing Trends

Pricing Trends is based on Average PSF for the period starting 1 Jan ’15 to 31 Dec ’19

1-bedroom units:
Pricing remained flat from 2015 to 2018. There was an uptrend seen in 2019 after the development obtained TOP. Prices increased by 17.46% over the 5-year period.

2-bedroom units:
Pricing remained flat from 2015 to 2016. There was a dip in prices in 2017, due to lower transacted PSF prices from larger 2-bedroom units. However, prices continued to increase in both 2018 and 2019. Prices increased by 7.38% over the 5-year period.

3-bedroom units:
Pricing remained fairly flat from 2015 to 2017, with a slight drop of 4% in 2018. There was a significant rise in prices in 2019. Prices increased by 12.03% over the 5-year period.

4-bedroom units:
Pricing remained flat from 2015 to 2018. Similar to 1-bedroom units, there was an uptrend seen in 2019. Prices increased by 8.67% over the 5-year period.